UK broadcaster ITV is actively negotiating with Sky to sell its linear broadcast business, ITV's CEO Carolyn McCall confirmed. A £1.6bn enterprise value is reportedly on the table for the division, which reported a 5% revenue drop in 2024. McCall stated ITV had created two separate, attractive entities: the profitable ITV Studios, expected to remain a listed company, and the broadcast division up for sale. This potential deal reshapes the UK media landscape, combining Sky's pay-TV dominance with ITV's free-to-air channels to counter streaming giants like Netflix.

The sale would also safeguard ITV's future as a public service broadcaster amid fierce online competition. Negotiations continue, with hopes for an agreement by next month, though no guarantee exists. ITV's streaming service ITVX saw 16% viewing growth and 12% higher digital ad revenue, offsetting the broadcast decline that contributed to a 5% group revenue fall to £4.1bn and a 35% pre-tax profit drop to £338m.

Digital ad revenue growth (12%) offered a positive counterpoint to the challenging advertising market.